Vertex Announces Fourth Quarter and Full Year 2024 Financial Results

Core Viewpoint - Vertex, Inc. reported strong financial results for 2024, showcasing a robust business model that supports consistent revenue growth and strong cash flow, driven by increasing complexity in indirect taxes and advancements in enterprise technology [2][5]. Financial Performance Fourth Quarter 2024 Financial Results - Total revenues reached $178.5 million, reflecting a year-over-year increase of 15.2% - Software subscription revenues were $152.6 million, up 16.8% year-over-year - Cloud revenues grew to $76.9 million, marking a 27.0% increase year-over-year - Annual Recurring Revenue (ARR) was $603.1 million, up 17.7% year-over-year, with contributions from acquisitions [5][30] - Net loss was $(67.8) million, compared to a net income of $15.3 million in the same period last year [5][30] Full-Year 2024 Financial Results - Total revenues for the year were $666.8 million, an increase of 16.5% year-over-year - Software subscription revenues totaled $567.1 million, up 17.9% year-over-year - Cloud revenues reached $276.0 million, reflecting a 28.6% increase year-over-year - Non-GAAP net income was $101.0 million, with a Non-GAAP diluted EPS of $0.61 [5][30] Key Business Metrics - Average Annual Revenue per direct customer (AARPC) increased to $122,706 as of December 31, 2024, compared to $118,910 a year earlier [5] - Net Revenue Retention (NRR) was 109%, down from 113% a year earlier, while Gross Revenue Retention (GRR) remained stable at 95% [5] - Adjusted EBITDA for the fourth quarter was $38.1 million, with an adjusted EBITDA margin of 21.3%, compared to 20.7% in the prior year [5][36] Financial Outlook - For Q1 2025, the company expects revenues between $175 million to $178 million and Adjusted EBITDA between $33 million to $36 million - For the full year 2025, projected revenues are between $760 million to $768 million, with cloud revenue growth anticipated at 28% and Adjusted EBITDA between $161 million to $165 million [10][6] Strategic Investments - The company plans to invest an additional $4 million in ecosio to enhance e-invoicing initiatives and approximately $10 to $12 million in R&D for AI-based products and other technologies [6]